chapter 9 review

A savings account sold by an insurance company, designed to provide payments to the holder at
specified intervals, usually after retirement.
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Terms in this set (40)
Comprehensive coverage takes care of damage to your car that is not caused by a collision.TrueWhich of the following is not a recommended way of lowering your car insurance premiums?Drop your auto insurance altogetherThe purpose of insurance is to:Transfer financial riskMoney markets are great for your emergency fund due to their liquidity and stability.TrueLife insurance policy for a specific period of time is called:TermWhich of the following is not a recommended way to save on your health insurance premium?If you are young and healthy, you do not need health insurance.Which of the following statements about disability insurance is false?Disability insurance is not necessary if you have a good health insurance policy.A retirement plan found in nonprofit organizations such as churches, hospitals and schools.403(b)Which of the following is a good investment option?Mutual fundsThe time between the disabling event and the beginning of payments in your disability coverage is called:Elimination periodCompany Xʹs board of directors has decided to issue a portion of its earnings to its shareholders. If you own stock in Company X, you can expect to receive a(n):DividendWhich of the following types of insurance is not recommended for a young single adult?Life insuranceWhich of the following would not be a huge financial risk (and, therefore would not require insurance) if you had a full emergency fund of $500 or more?You lose your cell phoneSavings accounts and money-market accounts are most appropriate for:Emergency funds and short-term goalsIn some cases, employers will match the employee contribution, but you should fund your plan whether your company matches or not. This statement refers to:401(k)Which of the following statements about the stock market is false?Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized stock exchange in the United States.Single stocks and mutual funds carry the same amount of risk.FalseA reason that people need to save and invest is to:Enable their money to make moneyA young investor willing to take moderate risk for above-average growth would be most interested in:Mutual fundsEmployee benefits packages:Are non-wage compensations provided to employees in addition to their normal wages or salariesLong-term investments, properly diversified, include the following mutual funds:falseGrowth, growth and income, international, aggressive growthtrueRenterʹs insurance is not necessary if you donʹt have a lot of expensive things.FalseA person becomes self-insured when:Their kids are grown, they have no debt, and they have fully funded retirementA mutual fund portfolio that is properly diversified will have all investment dollars located in just one of four different classes of financial assets.FalseYou are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:LiabilityWhich of the following is true?Any kind of duplicate insurance coverage is a bad idea.You can start investing with a small amount of money.TrueWhich of the following policies would be a duplicate coverage for your health insurance policy?Cancer and hospital indemnity insuranceAfter high school, you should have the following types of insurance: auto, renterʹs, health and long-term care insurance.False